Why would a non-accepted start-up still be given a preference over one that never applied? Is there something magic about applying for an incubator that makes

Why would a non-accepted start-up still be given a preference over one that never applied? Is there something magic about applying for an incubator that makes teams that do so better at their game? An 'unknown' losing to a 'failed' may cut off the lows but it also cuts off the highs!